Banking sector ‘resilient and stable’: RBI amid Adani Group’s stock trouble
- ByStartupStory | February 3, 2023
The Reserve Bank of India amid concerns about banks’ exposure to the troubled Adani Group, said that India’s banking sector is resilient and stable, and that the central bank keeps a close eye on lenders. In response to media reports expressing concern about Indian banks’ exposure to a “business conglomerate,” the Reserve Bank of India said in a statement that it is constantly monitoring the banking sector.
However, the RBI did not name the Adani Group. As per the current assessment, the RBI said, “the banking sector remains resilient and stable. Various parameters relating to capital adequacy, asset quality, liquidity, provision coverage and profitability are healthy.”
“As the regulator and supervisor, the RBI maintains a constant vigil on the banking sector and on individual banks with a view to maintain financial stability. The RBI has a Central Repository of Information on Large Credits (CRILC) database system where the banks report their exposure of Rs 5 crore and above which is used for monitoring purposes,” the central bank said. The RBI, the statement said, remains vigilant and continues to monitor the stability of the Indian banking sector.
It went on to say that banks are also in compliance with the Large Exposure Framework (LEF) guidelines issued by the RBI.
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